Auto entrepreneur is the status that many people are aiming for. It particularly concerns people wishing to set up a small-scale enterprise. This type of status is available to all: students, applicants jobs, employees … Discover how to get started in self-entrepreneurship, and what are the steps to take ?
Self-employed status: definition
Auto entrepreneur is the status of a person who carries on business in the form of a sole proprietorship. It enjoys a legal status that is tax-efficient and low-tax, according to French legislation. This is the ideal way to explore, test a project or practice a secondary activity.
How to become an entrepreneur
A. Becoming a self-entrepreneur: How to declare oneself?
Above all, it should be noted that the status of self-employed does not apply to companies with an annual turnover that exceeds the threshold of the tax regime of the micro-enterprise. This threshold is a function of the sector of activity where one wishes to launch. The two areas of activity are commercial activities (buying / selling, accommodation facilities, catering) and service provision as well as the liberal professions (which depend on the BIC, BNC).
A simple statement is enough to become an entrepreneur. Fill in the PO and AE forms. On the other hand, for certain trades such as that of electrician, it is necessary to justify an acceptable level of qualification. The said declaration will be transmitted by Internet to the Center of Formalities of the Companies. Depending on the area of activity, it will be sent to the Chamber of Commerce and Industry (CCI) for commercial activities; Chamber of Crafts Crafts (CMA) for crafts; the URSSAF for the liberal activities and the commercial court for a commercial agent in real estate.
Become an auto entrepreneur: Benefits
Become an entrepreneur
Moving to auto entrepreneur status entitles you to many benefits. In fact, as a self-employed entrepreneur, you are exempted from several charges, such as the famous property tax assessment (CFE). And that in your first year of activity. In addition, the administrative steps of declaring your micro enterprise are very simplified. It requires less energy than the formalities of companies such as SA, Sarl …
The accounting of the auto entrepreneur scheme is similarly lighter. You do not have to publish your accounts and you are free of VAT . That is, the value of a product excluding taxes is the same as the value TTC .
In addition, it should be noted that you do not have to make a capital contribution when starting your business . Yet this capital contribution is required for the majority of companies that have other legal forms. When you declare your business, you benefit from the Business Creation Assistance (ACCRE). ACCRE accompanies you and makes it easier to start your business. Help that reduces your social charges. The payment of income tax is simplified.
Self-entrepreneur status: the challenges
The disadvantage of this status is that you are forced to slow down your activities, so as not to exceed the threshold of the tax system of the micro enterprise. You will then switch to the regime of the individual company. The auto entrepreneur file does not take into account the status of old age. Unless it is not retained by the social security for the self-employed, and the interprofessional fund of the provident and the old-age insurance (Cipav), or the land subscription, or the professional insurance like other companies.
The self-employed entrepreneur is then totally responsible for the acts done on the professional level. Yet the problems related to its load can occur at any time. He must therefore subscribe to an independent professional liability insurance.
The platforms for linking self-employed entrepreneurs
The National Federation of Self-Employed Microentrepreneurs (FEDae) reveals that 34% of self-employed businesses use digital service platforms to find assignments (according to a national survey conducted in 2016). Auto entrepreneurs are increasingly using digital platforms to increase their turnover.
There are many digital ways around connecting two people. And this, whether between individuals or between professionals. These means thus constitute a major advantage for the self-employed. They can find new customers and increase their turnover. The principle is simple , users post requirements and providers respond. The process can be free or paid, on subscription or at the mission, or on the mission carried out. Hundreds of linking platforms are available on the web. Among these, we can mention:
FreelanceRepublik is a dual-entry marketplace that connects Tech & Digital freelancers with companies of all sizes and industries.
2. The Extras Club
The club of extras allows the hotels restaurants to order an extra in reception, room, kitchen and room. Free registration, no subscription and no commitment.
3. Brush’n barber
BRUSH’N BARBER is a website and an application for linking registered and private home hairdressers (M / F).
Present on the market since late 2016, the solution was designed to organize the meeting between the urban population in a hurry and connected and hairdressers
Hopwork is the network of freelance communities. More than 25,000 companies are looking for freelancers on Hopwork. It is the customer who comes almost to you.
SeFaireAider.com is a site that encourages direct employment without intermediary in all trades of services to individuals. More than 300 trades in 15 worlds: from more traditional ones like the childcare or the help to the old people, to the most original ones like coach of personal development
MyGooder’s business is to connect independent home care professionals with individual clients via a web platform. MyGooder is the equivalent of a full-service Human Services agency
Happysitters is the first platform dedicated to connecting parents and self-employed baby-sitters for after-school babysitters.
Jemepropose.com a platform for connecting individuals and / or professionals in the world of jobbing, services and local jobs.
Jemepropose.com has more than 600,000 members and 150,000 ads.
Welcome to the 1st community of creative freelance professionals. It offers the opportunity to graphic enthusiasts to diversify their missions.
JobyPepper is a platform that allows companies to outsource their simple tasks and a few hours to freelance students. A solution without commitment and without administrative procedure. No more small daily tasks that take time.
BeeBoss is an on-demand services platform dedicated to businesses. The platform organizes the link between a pool of qualified Talents and companies wishing to offer services to their end customers.
List of self-employed trades
Many trades are open to auto-entrepreneur status with a few exceptions. A non-exhaustive list of the most sought-after professions and practiced by auto entrepreneurs:
- Graphic designers
- Support function (administration, accounting, finance, marketing …)
- Editors and translators
- Marketing Specialists
- Directors and Editors
- Sound specialists
- Product designers and packaging
- Data scientists
- Sales and Marketing Consultants
- New technologies specialists
- Creative profiles in the broad sense
- data processing
- Digital Marketing
- Communication consultants
- System Administrators
- Project managers
- Sound expert
- Travel organizer
- Community Manager
- The consulting professions that can be done by telephone: astrologer, coach, numerologist, lawyer, psychologist, etc.
- Yoga coach
- Administrative assistance
- Auto agent
- Sports coach or life coach
- Home teacher (tutoring)
- Funeral Services
- Music therapist
- Business Contributor
- Pet sitter (pet sitting)
Self-Business Project: How to Build a Business
A. Market study
When you start your auto business project with the ambition to generate enough revenue to live on it, you will need to choose a profitable market segment (health and well-being, personal development, interpersonal relationships, Business and Entrepreneurship, Spirituality and esotericism) . Millions of people are interested in everyday life on one of these themes, they already have their habits of consumption. The needs of consumers are known and the ways to improve existing services are easily identifiable.
B. Networking and Strategic Partnership
When becoming a self-employed entrepreneur, consider contacting your network (acquaintances, family, former clients, business partners, former employer possibly). These are all potential customers likely to entrust you with the performance of services. Also participate in networking events near you. It is by going to meet others that you can meet their needs.
Auto entrepreneur: How to manage your money
I. Open multiple bank accounts
The advantage of the auto entrepreneur status is that your accounting is kept to a minimum. However, do not mix the private and the professional. So open a bank account for your business activity that is independent of your personal account. This professional account will be used to receive your money, and you will also be able to use it to cover the various charges and taxes. Each bank account must operate separately. Keeping your accounts will be greatly facilitated.
It should be noted that the auto entrepreneur status does not always require you to create a paid professional account. It is up to you to negotiate with your customer advisor of the bank to open a free account which includes both your name, first name and a business name for your auto business. The name of the business name will allow you to cash checks in the name of your business.
II. Manage the accounting of your own business
Although self-employed entrepreneurs are not required to keep a complete set of accounts or prepare a year-end balance sheet, they must keep two registers up to date:
at. The recipe book
This book must mention the amount and origin of the receipts collected chronologically. The references of supporting documents (invoices, etc.) must also be indicated.
b. A register of purchases
When the activity is traded, the auto entrepreneur must keep a register summarizing the details of his purchases by year, specifying the method of payment and the references of the supporting documents (invoices, etc.).
As a professional, the auto entrepreneur must give his customers a proper invoice and thus comply with the many mandatory information. In particular, invoices must bear the words “VAT not applicable, art. 293 B of the CGI “if it benefits from the basic franchise and the SIREN number it obtained when it was registered.
Pay Less Taxes: The Auto Entrepreneur Tax System
The auto entrepreneur benefits from the simplified micro-social scheme. It’s the same social coverage as the self-employed.
This scheme allows a simplified settlement of contributions and social contributions made in a monthly or quarterly payment whose amount is calculated by applying a rate to the turnover achieved.
The auto entrepreneur pays his social charges only on what he cash. If he does not collect anything, he does not declare and pay nothing. Indeed, the social package includes the contributions:
- health and maternity insurance,
- additional daily allowance,
- CSG / CRDS
- Family Allowances,
- basic pension,
- in respect of the compulsory supplementary pension,
- to the disability and death plan
- CSG / CRDS
- Income tax
- Auto entrepreneurs are subject to the tax regime of the micro-enterprise.
Self-employed income declaration
The auto entrepreneur can opt for the payment of the income tax. In the opposite case, the self-employed entrepreneur must declare his profits as part of his income tax return and be taxed on it.
Finally, to go further, discover in this video: “How to become a successful entrepreneur”